The US administration announced on Friday that it would require companies to pay $100,000 per year for H-1B worker visas. This move has led some major tech companies to advise visa holders to either remain in the US or return swiftly.
This change could significantly impact the technology sector, which heavily depends on skilled workers from countries like India and China.
Since taking office in January, US President Trump has initiated a comprehensive immigration crackdown, including efforts to limit certain forms of legal immigration. The decision to modify the H-1B visa program highlights his administration’s most notable attempt to reform temporary employment visas.
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What are H-1Bs?
The H-1B visa program is designed for individuals from other countries who are employed in specialty occupations in the US, often within the technology sector.
These roles can include software engineers, tech program managers, and other IT professionals.
H-1B visa holders in the US can extend their stay beyond an initial six-year period, which consists of three years plus a three-year extension, if a green card application has been submitted.
Other work programs include H-2A visas for temporary agricultural workers and H-2B visas for seasonal non-agricultural workers.
Some analysts suggest that the new fee might compel companies to relocate some high-value work overseas, potentially hindering America’s standing in the competitive artificial intelligence race with China.
The H-1B program provides 65,000 visas annually to employers bringing in temporary foreign workers in specialized fields, along with an additional 20,000 visas for workers with advanced degrees. Nearly all visa fees are borne by the employers.
Trump also signed an executive order on Friday to create a “gold card” for individuals who can afford to pay $1 million for US permanent residency.
What are Trump’s views?
Initially, Trump expressed support for the program. “I have many H-1B visas on my properties. I’ve been a believer in H-1B. I have used it many times. It’s a great program,” he told the New York Post.
However, he aimed to restrict them during his first term in office from 2017 to 2021.
Critics of the H-1B program, including many US technology workers, argue that it allows companies to lower wages and exclude Americans who could perform the jobs. Supporters, such as Tesla CEO and former Trump ally Elon Musk, claim it brings in highly skilled workers essential for filling talent gaps and maintaining competitiveness. Musk, a naturalized US citizen born in South Africa, has held an H-1B visa.
Some employers have exploited the program to suppress wages, disadvantaging US workers, according to the executive order Trump signed on Friday.
The number of foreign workers in science, technology, engineering, and mathematics (STEM) in the US more than doubled between 2000 and 2019 to nearly 2.5 million, even though overall STEM employment only increased by 44.5% during that period, it reported.
Who could be affected by policy changes?
India was the largest beneficiary of H-1B visas last year, accounting for 71% of approved beneficiaries, while China was a distant second at 11.7%, according to government data.
In the first half of 2025, Amazon.com and its cloud-computing unit, AWS, received approval for more than 12,000 H-1B visas, while Microsoft and Meta Platforms each had over 5,000 H-1B visa approvals.
Commerce Secretary Howard Lutnick stated on Friday that “all the big companies are on board” with the $100,000 annual fee for H-1B visas.
“We’ve spoken to them,” he said.
The Indian embassy in Washington and the Chinese Consulate General in New York did not immediately respond to requests for comment.
